Advice on making a tax efficient will

BlueButton

Registered User
Messages
29
Hi all,

I was visiting my aunt (late 70s), talking about her health, getting on etc and she mentioned her will.

She said she had made one about 20 years ago but wants to update it. I told her all she needs to do is make an appointment with her solicitor and they'll do the rest.

However, the problem is that she wants it to be as tax efficient as possible and the low inheritance tax threshold for 2 of her siblings is bothering her. She hates the thought that what she worked so hard for all her life, will be subject to tax all over again.

She's a single lady who has 3 siblings with spouses and nieces/nephews...(one of them is my Dad) and 2 other siblings who aren't married, so no spouses or children.

She's asset rich and cash poor - with her PPR as her main asset and when the time comes, she wants the PPR and car sold and her estate to be divided equally between her siblings. The married siblings would be given €32,500 with the balance split between their spouses and children.

The tax threshold for the 2 single siblings is €32500 and their share would be well above that amount leaving them with a sizable inheritance tax liability.

I'm guessing this is close to what she owns:

PPR in Dublin - value €600k approx
Car - value €15k approx
Savings ? Wouldn't know - think most of her salary would've paid her mortgage.
Pension: State pension only, I think.

I told her I didn't think there's any way to reduce their tax liability but to talk to her solicitor and maybe a tax consultant.

I'd appreciate if anyone on AAM might have any other suggestions.

Many thanks in advance,
Bluebutton
 

Horatio

Registered User
Messages
357
If she has savings she could start to distribute them immediately on an annual basis under the small gift exemption allowance.


EUR3000 per recipient per year tax free.
 

Horatio

Registered User
Messages
357
Yes but the O.P. has indicated that he doesn't know what is the situation with her savings.
He could mention the small gift allowance to her & it might be a runner - O.P. simply doesn't know her savings situation.
 

Ravima

Registered User
Messages
2,717
Its not really possible to write a will as you want. If you do, you will need a tax advisor as well as the solicitor. The tax advice will only be relevant to current tax law, so if the law changes at the next budget/finance act, are you prepared to make a fresh will?
 
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